Practice question
A general professional partnership has already availed of OSD in computing the income attributable to its partners. A partner then seeks another OSD on the same distributive income, arguing that the partnership and partner are separate persons. Which answer follows the current statutory limitation?
- Two OSD layers are always required
- A third OSD is available if the partner has receipts
- All GPP income is automatically exempt
- The restriction applies only to incorporated firms
- Section 34(L) allows OSD only once, either by the GPP or the partners, so the proposed second OSD on the same partnership income is impermissible
Legal references
- NIRC Section34(L), as amended by RA10963: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/80559
- RA9504, Section3: https://lawphil.net/statutes/repacts/ra2008/ra_9504_2008.html
- RR16-2008, Sections3–4 (individual and corporate OSD bases): https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/43850
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